ANNOUNCEMENT 26 Jul 2018
In June 2018, the European Investment Bank (EIB) signed a loan agreement with Roullier Group to support their plant and animal nutrition business activities. The loan is guaranteed by the European Fund for Strategic Investments (EFSI).
NUMBER OF INTERVENTIONS
The European Investment Bank, Financed Projects, GROUPE ROULLIER RDI PROGRAMME FINANCING: http://www.eib.org/en/projects/loan/loan/20170960
The European Investment Bank, Project summary, Project No. 20170960, GROUPE ROULLIER RDI PROGRAMME FINANCING: http://www.eib.org/en/projects/pipelines/pipeline/20170960
The European Investment Bank, press release issued on 28 June 2018, EIB supports Roullier Group’s bioeconomy innovation strategy: http://www.eib.org/en/infocentre/press/releases/all/2018/2018-170-la-bei-accompagne-la-strategie-dinnovation-du-groupe-roullier-dans-la-bio-economie
Roullier Group, who are we: https://www.roullier.com/en/the-group/who-we-are
European Commission (13 January 2015): The Investment Plan for Europe: Questions and Answers: http://europa.eu/rapid/press-release_MEMO-15-3223_en.htm
EIB: European Fund for Strategic Investments - Questions and Answers. Available at: http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf
The loan agreement between the European Investment Bank (EIB) and Roullier Group was signed on 26 June 2018 and has a total value of EUR 50 million (approx. USD 58 million). The loan is issued under the Agriculture and Bioeconomy Programme Loan, see related state act.
The loan will support the company's animal nutrition research activities concerning enhancing the company's plant and animal nutrition product portfolio, development of applications, and optimising its industrial process.
Roullier Group produces various plant and animal nutrition products. Whilst two-thirds of the company's turnover is derived from fertilizers, the company also provides nutritional supplements for animals and produces both magnesium and inorganic phosphate. The company is headquartered in France.
In this context, EIB Vice-President Ambroise Fayolle stated: "The EIB, and through it the EU, is pleased to be able to support a group like Roullier with the development of its innovation strategy and to help it develop environmentally-friendly animal and plant nutrition". In a tweet on 28 June 2018, the EIB referred to Roullier as "a major operator in animal and plant nutrition."
A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.
The EIB's loan to Roullier Group signed on 26 June 2018 was issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 50 million (approx. USD 58 million) and will support the company's plant and animal nutrition product portfolio, development of applications, and optimising its industrial process.
The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe. The EIB has designated EUR 7.5 billion of its capital for lending to European projects with a higher risk profile than usually taken on by the bank. To compensate for the increased lending risk, the European Commission has agreed to fully guarantee all lending under the EFSI up to a budget of EUR 26 billion. The loan described was issued under the EFSI and thus benefits from a full guarantee through the EU budget.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet from 13 January 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative [i.e. the EFSI] will benefit from the EIB’s strong credit standing that enables funding at favourable conditions and across maturities".